Morgan Stanley has hired a significant Merrill Lynch Private Wealth Management team based in Florida and New Jersey as it will add to the list of multi-million-dollar hires from the rival wirehouse.
The group includes Lawrence W. Mercedes Fonte, Erik Beiermeister, Steven, his son, and Catena and also three clientele associates. They’d been generating $7.5 million in annual fees and commissions, based on an individual familiar with their practice, as well as joined Morgan Stanley’s private wealth team for clients with twenty dolars million or even more in their accounts.
The team had managed $735 million in client assets from 76 households which have an average net worth of $50 million, based on Barron’s, which ranked Catena #33 out of eighty four top advisors in Florida in 2020. Mindy Diamond, an industry recruiter who worked with the group on the move of theirs, said that the total assets of theirs were $1.2 billion when factoring in new clients and market appreciation in the 2 years since Barron’s assessed the practice of theirs.
Catena, who spent all but a rookie year of the 30-year career of his at Merrill, didn’t return a request for comment on the team’s move, which took place in December, according to BrokerCheck.
Catena decided to move after the son Steven of his rejoined the team in February 2020 and Lawrence began considering a succession plan for his practice, according to Diamond.
“Larry always thought of himself as a lifer with Merrill-with no intention to make a move,” Diamond wrote in an email. “But, when his son, Steven, came into the business he soon began to view his firm through a whole new lens. Would it be good enough for the life of Steven’s career?”
The move comes as Merrill is actually launching a brand-new enhanced sunsetting program in November that can add an additional seventy five percentage points to brokers’ payout when they agree to leave the book of theirs at the firm, but Diamond said the updated Client Transition Program was not “on Larry’s radar” after he’d decided to make his move.
Steven Catena started his career at Merrill in 2016 but sojourned at Prudential Investment Management from 2017 until 2020 before rejoining, according to FintechZoom.
Beiermeister, which works separately from a branch in Florham Park, New Jersey, started the career of his at Merrill in 2001, as reported by BrokerCheck. Fonte started her career at Merrill in 2015.
A spokesperson for Merrill did not immediately return a request for comment.
The group is actually at least the fifth that Morgan Stanley has hired from Merrill in recent months as well as seems to be the largest. Additionally, it selected a duo with $500 million in assets in Red Bank, New Jersey last month and a pair of advisors producing aproximatelly $2.6 million from Merrill in Maryland.
In December, Morgan Stanley lured a solo producer in California that had won asset-growth accolades from Merrill and in October hired a 26-year Merrill lifer in a Chicago suburb which was generating much more than $2 million.
Morgan Stanley aggressively re entered the recruiting market last year after a three year hiatus, and executives have said that for the first time recently it closed its net recruiting gap to near zero as the number of new hires offset those who actually left.
It ended 2020 with 15,950 advisors – 482 more than twelve months earlier and 481 higher than at the end of the third quarter. Most of the increase came from the inclusion of more than 200 E*Trade advisors that work primarily from call centers, a Morgan Stanley executive said.
Merrill Lynch, that has stood by its freeze on veteran broker recruiting put in place in 2017, no longer breaks out its number of branch based wealth management brokers from its consumer-bank-based Edge brokerage force.